INCOTERMS 2000 - Chart of Responsibility

INCOTERMS 2000
Chart of Responsibility
When negotiating an international sales contract, both parties need to pay as much attention to the terms
of sale as to the sales price. To make it as clear as possible, an international set of trade
terms (INCOTERMS) has been adopted by most countries that defines exactly the responsibilities and
risks of both the buyer and seller including while the merchandise is in transit.
The following chart summarizes the responsibilities of both the buyer and seller for each of the current
13 INCOTERMS. In addition, a definition for each term is included at the bottom of the page.
For a more complete description of each of the INCOTERMS, The IBT Guide to INCOTERMS 2000
book published by International Business Training fully and clearly defines each of the new INCOTERMS
that became effective January 1, 2000, and includes a number of case studies that demonstrate the use
of the different terms in real-life situations.
EXW FCA FAS FOB CFR CIF CPT CIP DAF DES DEQ DDU DDP
SERVICES
Ex
Works
Free
Carrier
Free
Alongside
Ship
Free
Onboard
Vessel
Cost &
Freight
Cost
Insurance
& Freight
Carriage
Paid To
Carriage
Insurance
Paid To
Delivered
At
Frontier
Delivered
Ex Ship
Delivered
Ex Quay
Duty
Unpaid
Delivered
Duty
Unpaid
Delivered
Duty Paid
Warehouse
Storage
Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Warehouse
Labor
Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Export
Packing
Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Loading
Charges
Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Inland Freight Buyer
Buyer/
Seller*
Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Terminal
Charges
Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Forwarder's
Fees
Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller
Loading On
Vessel
Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Ocean/Air
Freight
Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller
Charges On
Arrival At
Destination
Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Buyer Buyer Seller Seller Seller
Duty, Taxes &
Customs
Clearance
Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller
Delivery To
Destination
Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller
* There are actually two FCA terms: FCA Seller's Premises where the seller is responsible only for
loading the goods and not responsible for inland freight; and FCA Named Place (International Carrier)
where the seller is responsible for inland freight.

The 13 INCOTERMS
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INCOTERMS 2000 - Chart of Responsibility
Origin Terms

EXW - Ex-Works, named place where shipment is available to the buyer, not loaded.
The seller will not contract for any transportation.


International Carriage NOT Paid by Seller

FCA - Free Carrier, unloaded at the seller's dock OR a named place where shipment is available to
the international carrier or agent, not loaded.
This term can be used for any mode of transport.

FAS - Free Alongside Ship, named ocean port of shipment.
Ocean shipments that are NOT containerized.

FOB - Free On Board vessel, named ocean port of shipment.
This term is used for ocean shipments only where it is important that the goods pass the ship's rail.


International Carriage Paid by the Seller

CFR - Cost and Freight, Named ocean port of destination.
This term is used for ocean shipments that are not containerized.

CIF - Cost, Insurance and Freight, named ocean port of destination.
This term is used for ocean shipments that are not containerized.

CPT - Carriage Paid To, named place or port of destination.
This term is used for air or ocean containerized and roll-on roll-off shipments.

CIP - Carriage and Insurance Paid To, named place or port of destination.
This term is used for air or ocean containerized and roll-on roll-off shipments.


Arrival At Stated Destination

DAF - Delivered At Frontier, named place of destination, by land, not unloaded.
This term is used for any mode of transportation but must be delivered by land.

DES - Delivered Ex-Ship, named port of destination, not unloaded.
This term is used for ocean shipments only.

DEQ - Delivered Ex-Quay, named port of destination, unloaded, not cleared.
This term is used for ocean shipments only.

DDU - Delivered Duty Unpaid, named place of destination, not unloaded, not cleared.
This term is used for any mode of transportation.

DDP - Delivered Duty Paid, named place of destination, not unloaded, cleared.
This term is used for any mode of transportation.
"INCOTERMS 2000" is one in a series of short articles published by International Business Training,
a division of InterMart, Inc. These articles are designed to help businesses and individuals succeed in
the global marketplace.

For more information about a variety of import and export publications, self-study courses and
seminars designed specifically for small and mid-sized companies, visit our web page at http://www.i-b-
t.net/.
The laws, regulations, procedures, requirements, methods, interpretations and other information
contained in this article are subject to change and therefore the reader should not rely solely on this guide
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INCOTERMS 2000 - Chart of Responsibility
in dealing with the commercial laws of the United States or foreign countries. Errors and
omissions, typographical, clerical and otherwise, sometimes occur and it is possible that errors
have occurred in respect to anything printed in this article.
(c) 2000 International Business Institute, Inc.
Used with permission by InterMart, Inc., PO Box 22267, Eagan, MN 55122-0267

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